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TORONTO: The Bank of Canada must strike a fine balance in its interest rate announcement Tuesday as consumer confidence falters and debt loads rise.

Many economists expect the central bank to take a break from three straight rate increases to its key lending rate to give the economy some space to grow.

They say shrinking inflation, downbeat employment data from September and a rising loonie all provide incentive to leave the rate at one per cent.

The Bank of Canada began hiking the rate in June, following a 14-month period in which the policy rate was pushed to the lowest possible in order to stimulate the economy.

Since June, there have been three increases of one-quarter point as the central bank reduces the amount of monetary stimulus is in the system.

Many private sector economists have warned that the Canadian and global economies are particularly volatile and advise against rapid tightening of the money supply.